Question

In December 2018, the first five transactions of Amer's Automotive Company have been posted to the T-accounts. Prepare the journal entries that served as the sources for the five transactions. Include an explanation for each entry (Click the icon to view the T-accounts.) Prepare each transaction in order according to the reference number shown in the accounts provided. (Record debits first, then credits. Select the explanation on the last line of the journal entry) Accounts and Explanation Debit Credit Accounts and Explanation Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question Save for Later

Answer 1

Accounts and Explanation Debit Credit (1) Cash 51,000 2$ Common Stock 51,000 (Issue of common stock) (2) Office Supplies 500 Accounts Payable 500 |(Purchase of office supplies of account) (3) Building 40,000 Cash 40,000 (Purchase of building for cash) (4) Cash 48,000 Notes Payable (Cash borrowed by issuing note) 2$ 48,000 (5) 4,400 2$ Equipment Cash 4,400 (Purchase of equipment for cash) %24 %24 %24